Refer to Figure 11-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A) a technological regression B) a decrease in capital per hour worked
C) an increase in capital per hour worked D) an improvement in technology
C
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If the Fed wishes to increase nominal interest rates, it must engage in an open market ________ of bonds to ________ the money supply.
A. sale; increase B. sale; keep constant C. sale; decrease D. purchase; increase
Monopolistic competition in long-run equilibrium is characterized by
A. excess capacity. B. higher cost per unit of output than under perfect competition. C. inefficiency in use of resources. D. All of the responses are correct.
What type of loan led the wave of bank lending in the 1970s and 1980s?
A) consumer loan B) commercial mortgage C) loans to state and local governments D) commercial paper
The reduction in transactions costs brought about by financial intermediaries benefits
A) small savers, but not small borrowers. B) small borrowers, but not small savers. C) both small savers and small borrowers. D) society through greater economic efficiency; small savers and borrowers do not gain directly.